Global Tax Risk Program Requires Deep Transfer Pricing Knowledge

The International Compliance Assurance Program is a voluntary program that helps companies assess international tax risks to quickly achieve greater tax certainty across multiple jurisdictions—typically six to eight countries. Statistics released by OECD in January showed promising results—a significant percentage of transactions made through ICAP were deemed low-risk.

But companies should carefully consider the pros and cons before entering the program, and determine what international issues are significant enough to warrant the upfront investment for ICAP, a process that requires deep understanding and comprehensive analysis of the company's global transfer pricing and international tax structure.